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Should Value Investors Buy Sykes Enterprises (SYKE) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Sykes Enterprises . SYKE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.80. This compares to its industry's average Forward P/E of 20.49. Over the past year, SYKE's Forward P/E has been as high as 17.71 and as low as 9.27, with a median of 13.93.

SYKE is also sporting a PEG ratio of 1.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SYKE's PEG compares to its industry's average PEG of 1.91. SYKE's PEG has been as high as 2.09 and as low as 0.93, with a median of 1.59, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SYKE has a P/S ratio of 0.93. This compares to its industry's average P/S of 0.94.

Value investors will likely look at more than just these metrics, but the above data helps show that Sykes Enterprises is likely undervalued currently. And when considering the strength of its earnings outlook, SYKE sticks out at as one of the market's strongest value stocks.

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